2018 Sales Data (updated)

OK, it’s January and I’m mostly recovered from the holidays. Here’s an update of my previous post from December.

There were 33 Home Sales in 2018. That’s about a 6% annual turnover for the neighborhood – a pretty low rate historically (about 10% might be considered average in most markets). Makes sense based on the low-inventory status of our Denver housing market.

Of those sales in Winston Downs, 80% were Ranches. The average ranch-style home was 1,935 sq ft (above grade), had 4 Bedrooms and 3 Baths with a 2-car garage, on a big 9,800 s.f. lot.

“We can always come down . . . “

Sellers who reduced their price: Before receiving an offer on their home, 45% of Sellers had to make a price reduction in 2018. Of those Sellers who had to make price reductions, the average total of reductions was $28,750.

The good news: on average a Seller received 98.1% of the final asking price. So does it even matter if you start too high-priced?

Consider this: Sellers who sold without a reduction took an average of 9 days to go under contract. Homes with price reductions took an average of 70 days to get an acceptable offer (and got 3% less of their last asking price).

So yes, you can always come down. And take longer to sell, and get less money in the end. Sorry, but it’s always been this way.

Why so many price reductions? And what is affecting prices?

The average sold price was $619,600, and it took an average of 37 days to get an acceptable offer. Let’s be clear, those are historically great figures for this neighborhood. However, the market has cooled a bit, or leveled off, or whatever you want to call it: there’s not the same frantic competition for homes that we’ve seen in recent years past.

Expect to see 1) some resistance to pricing from Buyers, 2) more over-pricing from some Sellers who aren’t recognizing the change in tempo, and 3) the increasing impact of adverse conditions (e.g., busy streets, deferred maintenance, floor plan, etc.) on value in a slightly cooler market.

Based on information from REcolorado®, Inc. for the period 1/01/2018 through 12/31/2018. Content maintained by REcolorado® may not reflect all real estate activity in the market.